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8/4/2019 IN THE BLACK with John Beveridge: Wine Online Finds Success with Buyers and Sellers, Herald Sun 24th August 2011
http://slidepdf.com/reader/full/in-the-black-with-john-beveridge-wine-online-finds-success-with-buyers-and 1/2
Herald Sun
Wednesday, August 24, 2011
Page : 36
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Copyright Agency Limited (CAL) licensed copy or Copyright Act 1968 (Cwlth) s 48A copy
BUSINESS DAILY
IN THEBLACKwith John Beveridge
Wine online finds success with buyersand sellers
IF youwantthe ultimatechallenge, it would be tosella product that isinchronic oversupply in
the softest discretionaryretail market for many
years.Which is why Cracka
Wines’ achievement of averaging 20 per centgrowth month on monthsince the start of 2011withvirtually no marketing is anamazing effort.
Turnover ison track toreach around $20millionthis financialyear andasharemarket float is on thehorizon.
According to managingdirector DeanTaylor, thesecret isto be friends tobothcustomers andwineries by sharing the
benefitof the lower marginsthatcan be charged onlinebetween them.
‘‘We havehad hundreds of consumers who havegoneto thetrouble of thanking usforour service and thewineries are really keen to
join because theyget tokeep moremargin,’’ saidDean, who pitched Crackaat the mid-priced onlinewine market betweenGraysonline and Langtons.
‘‘With wineries squeezedbetween thewineglutandthe retail power of Coles andWoolworths, the online sales
channel isa way for themtoget back some control overtheir marketing and brand.’’
Such success doesn’tcome easily or everyonewoulddo it, with thecompany website offeringextensive wine reviews andinformation, cellar doorsales, a falling price auctionsystem and fast deliverythrough Australia Post.
‘‘Australians love sport so you have to make buyinglike a sport,’’ explainedfounding chairman andformer chief operating
officer of carsales.com,Shane Pettiona.
‘‘If you can buy some winecheaper thanthe nextperson or race the clock andstill get what you want, itadds excitement to the
transaction.’’From Cracka’s
perspective, the great thingabout its business model isthatrevenue canmultiplymanytimes without havingan impact on costs — thecrucial advantage onlineretailers haveover theirbricksand mortar cousins.
The other bigadvantageis the open pricing modelwhich is difficult forthe Dan
Murphy’sof theworld tocopy if they want to retaindifferential pricing acrossvarious outlets.
Unfortunately it is tooearly to invest in the fast-growing Cracka other thanas a purchaser but therecent profit numbers out of carsales.com painted asimilarly attractive butmuch more mature onlinebusiness that should thrive
in a tough or booming retailenvironment, earning a buycall.
OUR earlyspeculative buy call on uraniumexplorer Uranex has
been vindicatedby a bigcorporate move yesterday.
The Melbourne-basedminnow is set to get a handy$20 million by selling thecompany’s Australianuranium assets to a majorChinese investor followingan independent valuation of the projects.
A non-refundable depositof $500,000is alreadyin thebank and the remaindershouldarrive within 90 daysif the due diligence andapproval from shareholdersand regulatorsis allforthcoming.
While Uranex’s ThatcherSoak, Bremer Basin andAlligator Riversprojects arealldesirable, the main gamefor Uranex is in Tanzaniawhere itsMkuju project hashuge potential.
With around 69km of strike, uranium anomalies in
five different areas andstellar drilling results, theextra cash shouldallowUranex to speedup thetaskof getting somereserves onthe books and some scopingand feasability studies
Clip ID : 2398322
8/4/2019 IN THE BLACK with John Beveridge: Wine Online Finds Success with Buyers and Sellers, Herald Sun 24th August 2011
http://slidepdf.com/reader/full/in-the-black-with-john-beveridge-wine-online-finds-success-with-buyers-and 2/2
Herald Sun
Wednesday, August 24, 2011
Page : 36
Section :
Edition :
Region : Vic Metropolitan
Page : 2 of 2
Circulation : 514,000
Area Of Clip : 303.23 sqcm
Clip ID : 0000001
Copyright Agency Limited (CAL) licensed copy or Copyright Act 1968 (Cwlth) s 48A copy
completed.Theother nice things to
note aboutMkuju is thesandstone style of uraniummineralisation which helpsto cut extractioncoststhrough either open-pitminingor in-situ leach.
Even without theAustralian assets, Uranex isnot a one-trickpony withthe Songea thermal coalproject in Tanzania’sRuhuhu coal basin addinganother sourceof futurecashflow should the post-Fukushima recovery of uranium prices be slowerthan expected.
TheHeraldSunaccepts no responsibilityfor stock recommendations. Readers shouldcontacta licensed financialadviser.
CARSALES.COM
4.80
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$5.30
4.20Aug 2010 Aug 2011
HIGH $5.31
LOW $4.19
ug 2010 ug 2011
URANEX
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Aug 2010 Aug 2011
HIGH 81.5c
LOW 14.5c
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